Equity Mutual Fund
I want to invest into stock markets but don’t know which stocks to invest into. I don’t know when to buy and when to sell these stocks. I don’t have necessary knowledge to do the analysis.
Well, if you are faced with similar questions! Equity Funds are one stop solution for you.
Equity Mutual Funds are funds that primarily invest into stocks/shares of companies. They are managed by professional fund managers who do a thorough research and analysis before investing into stock markets.
These are considered high-risk funds but they usually provide high returns. Equity Funds are subdivided into three major categories.
Large Cap Funds invest into companies with large market capitalization. This means these funds invest into big companies such as Reliance Industries, Tata Steel, etc which are relatively safe to invest.
Mid Cap Funds invest in relatively mid-size companies such as Bank of India, TVS motors, etc. Usually, mid cap funds are riskier than large cap funds but have higher return potential over 3 to 5 years' time.
Small cap Funds invest in small companies. They are the riskiest but with the potential to generate highest returns. Investors usually invest into small cap funds for more than 5-7 years.